NoblePay vs Your Local Banks Merchant Account Program…

One of the most common myths when it comes to establishing a merchant account is that your local bank can give you a better deal than other credit card processing service providers.

Its only natural to assume that your local bank is where you should go to get a merchant account.

After all its where you keep your money so it certainly makes sense to speak to them.

The truth is, that in most cases your local bank will not be the most economical solution.

In fact, it can be one of the more costly programs available to small business owners.

Local banks often resell merchant services from other processors.

For example, NoblePay serves banks who resell our services to their clients.

Because the local bank is purchasing merchant services from a reseller, they need to sell at higher rates and fees in order to make a profit. This additional price increase makes it very difficult for local banks to be competitive in the merchant services arena.

When you buy from the processor you’ll have a direct relationship with a registered merchant service provider eliminating the middleman.

Because we have partnerships with banks all over the country we know first hand how local banks work with merchant service providers and the markups involved.

We have a price protection plan which means we guarantee that you’ll have lower monthly service charges, lower rates and lower equipment costs than you would with your local bank.

Another common myth as that you’ll have better customer service and support with your local bank

Again, its easy to assume that you’ll get superior customer service from your local bank because its easy to go to your local branch and speak to somebody – right?

In a reseller model, the local bank is not responsible for handling customer service issues. Instead, customer service issues are the responsibility of the originating provider that is reselling merchant processing services to the bank.

When you contact your bank for support your bank will either refer you to their partner or tell you that they’ll get back to you after they’ve had a chance to contact the reseller for support.

Either way, this is not the stellar customer service that most merchants are expecting when they sign up for merchant services through their local bank.

Another myth is that your bank will provide Unbiased Strategic Consulting

Unfortunately this is far from the truth as local banks are frankly self serving and motivated to push products that meet their own needs and not necessarily yours.

For example, because the processing partner needs to give the bank a cut of the processing revenue, they need to find ways to make money in other areas. The local sales representative of the processor your bank has partnered with makes their money by selling over priced equipment. Often the representative will try to push long term leases or have high markups to purchase the hardware necessary for credit card processing.

Finally, most merchant agreements that originate from the local banks processing partner have miscellaneous fees such as monthly minimums, and hold long term commitments of up to 48 months which you should avoid at all costs!

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